Capturing the HEART of the Home Buyer - Emotional Purchases versus Commodity Comparisons

Those of you who have heard me speak recently know this is a hot topic we are capitalizing on at Hearth and Home. Men and women shop differently. For a retail science perspective, most retailers are merchandised and presented for the manner in which women shop.

We know that women drive 80% of home improvement decisions (Lowe's study), but overall, more than 85% of all consumer purchases. Isn't a new home the largest consumer purchase that a consumer is likely to make?

Back to the basics. Men are hunters, women are gatherers. Men approach a retail experience with focus and intent. They know what they want, enter the store, and walk directly to the item, then leave. Unless necessary, they will rarely choose a cart. Milk; BAM! Bread; BAM! to the front of the store, eyeing for the shortest checkout line. Visual cues are the fastest method for reaching the male shopper, but he will be much less likely to add on to his purchase.

Women gather and experience. Enter the store with an idea of what they need, still will typically get a cart. Women turn to the right to start to shop (74% of shoppers begin shopping to the right). In a grocery store setting, you will see the seasonal and sensory departments placed around the perimeter of the store to lead the shopper through: floral, card and gift, bakery, produce, deli. All senses are engaged; very effective with the female shopper. Fresh bread or flower aroma? BAM! Ripe avocado or tomato to touch? BAM! Sample pasta salad at the deli? BAM! Fresh latte steaming (sound, taste, smell) at your coffee cart? BAM! For any of you ever in the Twin Cities, check out local grocery experts Lund's and Byerly's - they set the bar very high.

Enter for milk and bread, leave with much more. It's the experience.

The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary by Joseph Michelli is a wonderful read that really boils down the key philosophies that will drive consumers to pay 4 times as much on a half caf, no whip, soy almond latte at Starbucks as one could at the local gas station for a 'good cuppa joe'. The truth be known, coffee is a commodity. It is bought and sold on commodity markets just like wheat, oil or coffee.

With no value added additions, the focus for the consumer will ALWAYS be price. (97 cent gas station coffee) By adding surprise and delight, service, and the customer's ability to personalize their coffee experience, the perceived value to the consumer is huge. Could millions of consumer's really be paying 4 times as much for a cup of coffee? You bet.

It is about the experience. When one enters Starbuck's, all senses are engaged, current music playing (and available for sale along with various gifts), coffee aroma, the sound of steaming milk, even the color of the retail environment is messaging: (greens for growing beans, reds and browns for roasting beans, blue to represent brewing coffee, and pastels to represent the coffee aroma). Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture by John Moore Wireless Internet, a comfortable club chair, and yes, a FIREPLACE, all add to the experience. Although later version prototypes have moved away from this concept, store layouts were originally designed to allow the customer to watch the theater of the coffee process and chat and engage with the baristas. As you all have experienced, one may come in for a coffee, but may leave with a cookie, a mug, or upgrade to a larger size.

As of late, you all have heard the news that Howard Schultz felt the company had gone off track from core principals. He is back at Starbuck's, and he just re-engaged his original store design partner to return as well. You can bet we will see the 'wall' in the service area move down or become more transparent, as Howard works to bring the 'experience' back to Starbucks. This fall the Starbuck's store design team is headlining the International Retail Design Conference (held in Seattle) and there is much discussion about a possible new store prototype designed with the 'experience' in mind.


The experience in our design centers can be much the same. When the consumer sees their option upgrades as commodities, and the selection experience is a 'checklist', price is the natural comparison factor. I know all of you love hearing "This faucet is only $99 at Home Depot!".


In our design centers, how can we make the experience happen? Creating an experience for the consumer takes time and personal connections (we are all working with smaller staffs now). It takes choices and the ability to personalize (SKU reduction focus' have impacted every single builder). But it is important. Very important.


If we consider a fireplace, cost will always be the focus when it is about the 'appliance'. But, we have proven results that show the consumer is willing to pay for options and upgrades when we deliver the experience. In our setting, this means fireplaces that burn, chairs in front, decor on the wall, and the ability to create a unique combination of fireplace, surround and mantel that will remain the heart of the home for a lifetime.

Of course, the consumer views the fireplace as the heart of the home - where is every family photo taken/ Where are holiday decorations displayed? Where do we gather after dinner on Thanksgiving? If you Google "Family Fireplace" in Google Images, you will find family photos at fireplaces from all over the world.



To the female consumer, she views the whole wall as the 'fireplace' : mantel, surround, art or decor, and oh yes, that box in the middle. In the facings category, she is extremely likely to choose an option or upgrade when offered, if we offer the right items for your consumer in your market. We don't need thousand of sku's, let us help you find the right sku's for your market. (Hearth and Home Technologies is also in the retail business, don't forget.)



Once again, it is about the experience: when your consumer feels they have 'designed' their fireplace by choosing a mantel, a stone or marble surround, and a decorative fireplace front, this is no longer a commodity that drives a price comparison. You have created her experience.



Although these specifics are about creating the fireplace experience in your design center, take it one step further - what else can you offer your home buyers to add perceived value to your homes, and the purchase and design process you offer as a builder, and design center? I would love to hear what you all are doing that works!

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Krisann is a member of the Institute of Store Planners. Contact her at brownkr@hearthnhome.com or 952-985-6537

Learning From Retail: The Neighborhood Factor

Learning From Retail: The Neighborhood Factor

National retailers are creating a local connection, emphasizing community ties and a sense of neighborhood. USA Today reports "It's a beautiful (shopping) day in the neighborhood", highlighting Starbuck's promotional efforts indicating they have the best coffee in the neighborhood. Go on line to http://www.starbucks.com/ to locate a store, and you will even be able locate the Starbucks location nearest you with an upcoming community event, charitable event, book club meeting or even an arts and crafts event.

Applebee's slogan "It's a whole new neighborhood." jives with it's latest TV ads, "you're not just our customers, you're our neighbors." Tesco's newest grocery stores are named "Fresh and Easy Neighborhood markets". Lowes recently relaunched their website that encourages you to "come and meet your new neighbors."


Electronic trends have shown the American consumer is seeking a real sense of community. (look at the meteoric rise of social and business networking communities, from MySpace to FaceBook to LinkedIn).


Community and neighborhood concepts have permanently impacted retail store design. Enclosed shopping malls are becoming a thing of the past, the last American full scale mall constructed in 2006. Lifestyle shopping centers are presenting the consumer with a feeling of a little downtown, gathering places, and designed to emphasize the outdoor environment, allow the consumer to linger, mingle and interact. Restaurants with cafe fronts are typically placed throughout the centers. Once again, window merchandising is becoming important at families and couples stroll along to 'window shop'.

Typically lifestyle centers feature a center architectural attraction that draws the consumer and creates a space to meet, relax and interact. The newest Archi-Tech magazine highlights Tempe Marketplace in Arizona, where the mall has interactive fountains and water cascades with lighting, music and a giant center fireplace. The Tempe Marketplace website has links to "Community", inviting you to join forums including fitness / wellness, arts and earth friendly groups.

Once again, what does this mean to your design center? Staff should be knowledgeable about communities, and local amenities. Builders should deliver a folder with printouts of area coffee shops, theaters, active options, and local shopping places ready to go. Continuing with the feeling of community and neighborhoods, how about providing some information about area clubs and volunteering opportunities to help a new home purchaser get involved right away?

Hedgewood Homes, Atlanta

In new construction, we sometimes forget that we are in the business of creating neighborhoods. Hedgewood Homes, a builder in Atlanta, does a terrific job of highlighting neighborhood and community on their website. Hedgewood points out community features such as public spaces, children's parks, fire pit and swimming pool, but also links to community schools, points of interest and even the local civic center. Consumer's can choose to click "Contact neighborhood" to reach sales staff.

Consider adding links to your community and design center website that creates a sense of neighborhood and community. Walk Score is a great online tool that maps out everything from churches to coffee shops to gyms within walking distance. Enter any address in the US, and Walk Score will also grade the location based on the livability of the neighborhood. With gas prices at historic highs, your new home buyer will love the opportunity to support local businesses and save gas at the same time.

From the Walk Score website: What is Walk Score?
We help home buyers, renters, and real estate agents find houses and apartments in great neighborhoods. Walk Score shows you a map of what's nearby and calculates a Walk Score for any property. Buying a house in a walkable neighborhood is good for your health and good for the environment.

Walk Score encourages real estate sights to add their link to their website. "Home buyers and renters can compare the walkability of properties and see a map of what's nearby."

From Walk Score:

Walkable Neighborhoods
Picture a walkable neighborhood. You lose weight each time you walk to the grocery store. You stumble home from last call without waiting for a cab. You spend less money on your car—or you don't own a car. When you shop, you support your local economy. You talk to your neighbors.

What makes a neighborhood walkable?

Walkable communities tend to have the following characteristics:
A center: Walkable neighborhoods have a discernable center, whether it's a shopping district, a main street, or a public space.
Density: The neighborhood is dense enough for local businesses to flourish and for public transportation to be cost effective.
Mixed income, mixed use: Housing is provided for everyone who works in the neighborhood: young and old, singles and families, rich and poor. Businesses and residences are located near each other.
Parks and public space: There are plenty of public places to gather and play.
Accessibility: The neighborhood is accessible to everyone and has wheelchair access, plenty of benches with shade, sidewalks on all streets, etc.
Well connected, speed controlled streets: Streets form a connected grid that improves traffic by providing many routes to any destination. Streets are narrow to control speed, and shaded by trees to protect pedestrians.
Pedestrian-centric design: Buildings are placed close to the street to cater to foot traffic, with parking lots relegated to the back.
Close schools and workplaces: Schools and workplaces are close enough that most residents can walk from their homes.

As a builder, highlighting neighborhood and community will positively impact your sales, and create referrals.

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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537